Keep your faith in classic purchases
Iread with interest the headline in CCW’s 5 July issue ‘ Traders fear classic sales are cooling’. Speaking as chairman of one of Britain’s high volume retailers and restorers, I don’t share those fears.
Surely the signs were all there that the global economy was in for a rough ride ten years ago and those who saw a crash coming did very well by their accurate prediction of what was to come.
Former Prime Minster, David Cameron, speaking at the 2014 G20 Brisbane Summit said: ‘Six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy’. Since then we have had the Brexit vote and more recently the shock General Election when, far from securing the firm mandate our current Prime Minister sought, the Government ended election day with a bloody nose and further uncertainty and fear came back into the financial sector. My view is that we will encounter economic woes that will erode the purchasing power of our money. It has already happened with the plummet in GDP/Dollar rates following the Brexit vote. If another adjustment is to come, I would rather be sitting with a barn full of classic cars than a paper promise to pay with a value based on ‘market confidence’.
The reality is that the classic car market has for many years outperformed the stock market, yields on savings and every other investment class. With a growing middle class in Asia and other markets, demand for our wonderful classics is greater than ever.
Our business began in the teeth of the major recession of 1991. At a time when many owners needed to sell, business was brisk at the new ‘recession adjusted’ prices. Car values had fallen after being overheated by speculative investors. Now the market is very different. Values have risen markedly, but the gentle rise in values has been demand-led.
No, it’s not a time to fear. In fact, it’s time to get the cheque book out and keep some of your precious savings in the garage.
Nick Szkiler, Chairman, Classic & Sportscar (Holdings) Ltd.